The Haryana government on Thursday said that it has a very close relationship with Maruti Suzuki and that the company has no plans to close down its Manesar plant on account of the demand raised by the Haryana State Industrial and Infrastructural Development Corporation (HSIIDC) for payment of
the enhanced land compensation.

Clarifying on reports that auto major Maruti Suzuki had expressed its intent to shut down its plant at Manesar on account of HSIIDC demand mentioned above, an HSIIDC spokesman said in a release that the state government and Maruti Suzuki India Ltd had shared very close relationship over the last three decades, and the state government had been extremely supportive of the company.

The Maruti Suzuki India Ltd was allotted land measuring 500 acres on April 5, 2004 at the rate of Rs. 19.50 lakh per acre and, thereafter, additional land measuring 100 acres was allotted on Januray 4, 2005 at the rate of Rs. 21.45 lakh per acre, he said.

As regarded the enhanced compensation, the landowners whose land was acquired under the Land Acquisition Act had a statutory right to file references under Section 18 of the Act seeking higher compensation as compared to what had been determined by the land acquisition collector and paid to them at the award stage, he said.

The spokesman said the demand for payment of tentative enhanced compensation at the rate of about Rs. 2,000 per square metre, as per interim orders of Supreme Court of India dated August 10, 2011, wherein the HSIIDC was directed to pay enhanced compensation at the rate of about Rs. 28 lakh per acre along with statutory benefits, was raised in September 2012 from all the allottees of Phase-II and III of IMT Manesar, including Maruti Suzuki India Ltd.

The HSIIDC had already made the enhanced cost payments to the land owners, which was now being recovered from the allottees. Further, a number of allottees had already made the payments, he said and added that the matter was still pending in the Punjab and Haryana High Court and HSIIDC was contesting the case.